Question 1

The posting process is the link between the _______________ and the _____________.

Accepted Answer

journal; ledger

Question 2

Match between columns
                        Premises: Unearned revenues
Note receivable
Trial Balance
Account
General journal
Compound journal entry
T-account
Chart of accounts
Posting
Posting reference column

Accepted Answer

The Answer of A written promise from a customer to is...

Question 3

An account used to record the owner's investments in the business is called a(n):

Accepted Answer

A) Withdrawals account. 
B) Capital account. 
C) Revenue account. 
D) Expense account. 
E) Liability account. 
A) Withdrawals account. 
B) Capital account. 
C) Revenue account. 
D) Expense account. 
E) Liability account. B

Question 4

Explain how accounts are used in recording information about transactions.

Accepted Answer

Accounts are classified into three gener

Question 5

An accountant has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Accepted Answer

A) Credit another asset account for $1,500. 
B) Credit another liability account for $1,500. 
C) Credit an expense account for $1,500. 
D) Credit the owner's capital account for $1,500. 
E) Debit another asset account for $1,500. 
A) Credit another asset account for $1,500. 
B) Credit another liability account for $1,500. 
C) Credit an expense account for $1,500. 
D) Credit the owner's capital account for $1,500. 
E) Debit another asset account for $1,500.

Question 6

Of the following accounts,the one that normally has a credit balance is:

Accepted Answer

A) Cash. 
B) Office Equipment. 
C) Wages Payable. 
D) Owner, Withdrawals. 
E) Sales Salaries Expense. 
A) Cash. 
B) Office Equipment. 
C) Wages Payable. 
D) Owner, Withdrawals. 
E) Sales Salaries Expense.

Question 7

A column in journals and ledger accounts used to cross reference journal and ledger entries is the:

Accepted Answer

A) Account balance column. 
B) Debit column. 
C) Posting reference column. 
D) Credit column. 
E) Description column. 
A) Account balance column. 
B) Debit column. 
C) Posting reference column. 
D) Credit column. 
E) Description column.

Question 8

The right side of a T-account is a(n):

Accepted Answer

A) Debit. 
B) Increase. 
C) Credit. 
D) Decrease. 
E) Account balance. 
A) Debit. 
B) Increase. 
C) Credit. 
D) Decrease. 
E) Account balance.

Question 9

At year-end,Harris Cleaning Service noted the following errors in its trial balance:
1.It understated the total debits to the Cash account by $500 when computing the account balance.
2.A credit sale for $311 was recorded as a credit to the revenue account,but the offsetting debit was not posted.
3.A cash payment to a creditor for $2,600 was never recorded.
4.The $680 balance of the Prepaid Insurance account was listed in the credit column of the trial balance.
5.A $24,900 truck purchase was recorded as a $24,090 debit to Vehicles and a $24,090 credit to Notes Payable.
6.A purchase of office supplies for $150 was recorded as a debit to Office Equipment.The offsetting credit entry was correct.
7.An additional investment of $4,000 by Del Harris was recorded as a debit to Del Harris,Capital and as a credit to Cash.
8.The cash payment of the $510 utility bill for December was recorded (but not paid)twice.
9.The revenue account balance of $79,817 was listed on the trial balance as $97,817.
10.A $1,000 cash withdrawal was recorded as a $100 debit to Del Harris,Withdrawal and $100 credit to cash.
Using the form below,indicate whether each error would cause the trial balance to be out of balance,the amount of any imbalance,and whether a correcting journal entry is required.

Accepted Answer

The answer of At year-end,Harris Cleaning Service noted the following...

Question 10

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true?

Accepted Answer

A) If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions. 
B) The trial balance is a book of original entry. 
C) Another name for the trial balance is the chart of accounts. 
D) The trial balance is a list of all accounts from the ledger with their balances at a point in time. 
E) The trial balance is another name for the balance sheet as long as debits balance with credits. 
A) If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions. 
B) The trial balance is a book of original entry. 
C) Another name for the trial balance is the chart of accounts. 
D) The trial balance is a list of all accounts from the ledger with their balances at a point in time. 
E) The trial balance is another name for the balance sheet as long as debits balance with credits.

Question 12

The heading on each financial statement lists the three W's - Who (the name of the organization); What (the name of the statement); and Where (the organization's address)

Accepted Answer

A) True 
 B)False

Question 13

An owner's capital account normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 14

A debit entry is always favorable.

Accepted Answer

A) True 
 B)False

Question 15

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

Accepted Answer

A) True 
 B)False

Question 16

The first step in the processing of a transaction is to analyze the transaction and source documents.

Accepted Answer

A) True 
 B)False

Question 17

What is a trial balance?
 What is its purpose?

Accepted Answer

The trial balance is a list of all of th

Question 18

Explain the difference between a ledger and a chart of accounts.

Accepted Answer

A ledger is a record containing all of t

Question 19

The second step in the analyzing and recording process is to record the transactions and events in the______________.

Accepted Answer

The answer of The second step in the analyzing and...

Question 20

Describe the link between the income statement,the statement of owner's equity,and the balance sheet.

Accepted Answer

The income statement shows the amount of

Exam 2: Analyzing and Recording Transactions

The posting process is the link between the _______________ and the _____________.

An account used to record the owner's investments in the business is called a(n):

Explain how accounts are used in recording information about transactions.

An accountant has debited an account for $3,500 and credited a liability account for $2,000.Which of the following would be an incorrect way to complete the recording of this transaction:

Of the following accounts,the one that normally has a credit balance is:

A column in journals and ledger accounts used to cross reference journal and ledger entries is the:

The right side of a T-account is a(n):

Generally,the ordering of accounts in a trial balance typically follows their identification number from the chart of accounts,that is,assets first,then liabilities,then owner's capital and withdrawals,followed by revenues and expenses.

Which of the following statements is true?

The heading on each financial statement lists the three W's - Who (the name of the organization); What (the name of the statement); and Where (the organization's address)

An owner's capital account normally has a debit balance.

A debit entry is always favorable.

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

The first step in the processing of a transaction is to analyze the transaction and source documents.

What is a trial balance? What is its purpose?

Explain the difference between a ledger and a chart of accounts.

The second step in the analyzing and recording process is to record the transactions and events in the______________.

Describe the link between the income statement,the statement of owner's equity,and the balance sheet.

Accounting in Business

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

The posting process is the link between the ___ and the _.